Elpida Memory, which operates one of the world’s largest DRAM memory fabs in Hiroshima, Japan, will undergo a major internal transformation as the company battles a continued over capacity in the memory markets and seeks Japanese Government funds to continue operations. Elpida said it would divide the massive facility into two separate lines, one dedicated to mobile device-related DRAM and the other to PC related DRAM devices. Both lines will have their own management teams and operate separately, the company said.

As a consequence of the product-specific line manufacturing layout at the meg-fab, Elpida said that production of PC related DRAM would decrease by 10-20%.

The Japanese Government has also pledged aid to Elpida under a public fund scheme to the tune of approximately US$312 million, which will be handled by the Development Bank of Japan. Elpida is the first Japanese company to receive aid under the new scheme, setup to help companies in financial crisis but are deemed important to the Japanese economy.